Here's how the finance function can leverage technology to work harder and smarter
Cash is king and the payment processes’ efficiency can be a major competitive differentiator. Take your first step towards automating the finance function.
Today’s business leaders are constantly trying to strike the right balance between driving operational efficiencies, delivering cost savings, implementing innovation and enhancing the customer experience. The right formula however isn’t easy to come by and digital solutions are constantly being sought to achieve the perfect balance of operational efficiency and business progress.
In board meetings of years gone by, the finance function, and the CFO, would not feature as part of these conversations, restricted to delivering detailed financial updates in their designated role as “bean counter”.
AP automation not only represents a complicated transformation process but also a costly one. This has not escaped the attention of the C-suite either, outlined in AIIM’s Finance and Accounting in 2017: Automating Core Information Workflows report, in partnership with Canon. In fact, 25% of finance professional believe that their adoption of an AP automation solution would have no perceived effect on their invoice processing costs. This despite, 23% predicting a 15%-20% cost reduction by deploying an AP automation solution, and 22% expecting invoice cost reductions of 25%-50%. Why then are the tangible benefits of automation getting overlooked?
Perhaps the hardest barrier to overcome however is that of legacy. Twenty-two percent of executives describe automation as a solution that is “neither customisable or in-line with their current priorities”; resulting in a reluctance to push automation projects through. A further 23% report that juggling a number of projects makes prioritising a struggle. This senior reluctance to truly back an automation push is apparent. A quarter (27%) of employees cite senior executive attention and sponsorship as a major roadblock to getting AP/AR automation project approval, despite the fact that advanced processes could massively improve their performance.
Ultimately, the C-suite must be convinced of the potential of automation before committing to a transformation plan. While some may already be convinced of the benefits, for example faster turnarounds (46%), greater accuracy (46%) and better data capture (35%); it is still a daunting step for businesses who lack digital experience. Finance teams should therefore focus on building a strong business case for transformation, focusing first on the processes that will have the biggest impact on the business, with minimal investment required. Once senior management are convinced of the benefits, a wider automation strategy can then be rolled out.
If finance is ever to be truly considered an innovative function that’s part of a businesses’ drive forward then it needs to work hard to move away from its bean counting reputation. The opportunity is there. Automation has the potential to transform finance perhaps more than any other department and in so doing, liberate the department from its dusty reputation.
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How to boost the reputation of the finance department through digital transformation
